By Bibhu Pattnaik
Publication Date: 2025-11-16 19:46:00
Oracle Corporation (NYSE:ORCL) has seen a significant market reaction following its bold shift towards artificial intelligence (AI), which resulted in shares falling 25% last month.
What happened: Oracle’s ambitious entry into the AI sector, fueled by significant borrowing, has caused unease on Wall Street.
The tech giant has promised to invest hundreds of billions in chips and data centers over the next few years, primarily to bolster the computing capacity of OpenAI, the creator of ChatGPT.
As reported According to the Financial Times, the scale and speed of Oracle’s strategic change has raised doubts among investors, particularly at a time when the spending patterns of large technology companies that build massive data centers or hyperscalers are under scrutiny.
Shares of Oracle suffered a 25% decline last month, nearly double the decline of the next worst-performing hyperscaler, Meta. This downturn wiped out over $250 billion in market value gains that Oracle had made…